Piercing Line Candle-stick - Dark Cloud Cover Candlestick - Piercing Line vs Dark Cloud Cover

Piercing Line Bullish Candles Pattern - Dark Cloud Cover Bearish Candle Pattern

A Piercing Line Candle-stick Pattern and Dark Cloud Candle Pattern look alike but the difference is that one occurs at the top of a Forex uptrend (Cloud Cover) and the other occurs at the bottom of a downwards Forex trend (Piercing).

Upward Trend Reversal - Dark Cloud Cover Candlesticks

Downward Trend Reversal - Piercing Line Candlesticks

Piercing Line Candlestick

Piercing line is a long black body followed by a long white body candlestick.

White body pierces the midpoint of the prior black body.

This is a bullish reversal pattern that occurs at the bottom of a market downtrend. It shows that the market opens lower & closes above the midpoint of the black body.

This highlights that the momentum of the downtrend is reducing and the market trend is likely to reverse and move in an up-wards direction.

This pattern is displayed referred to as a piercing line signifying the market is piercing the bottoms showing a market floor for the currency price down ward trend.

Piercing Line Candle

Technical Analysis Piercing Line Candle-stick Pattern

A buy signal is confirmed once price closes above the neckline which is the opening of the candlestick on the left of the Piercing Line candle.

This is a bullish setup and price should continue heading upwards & for a trader who puts a buy trade should also place a stop loss order just below the lowest price level.

Dark Cloud Cover Candlestick

Opposite of piercing candlestick.

This candle stick is a long white body followed by a long black body.

Black body pierces the mid point of the prior white body.

This is a bearish reversal pattern which occurs at the top of an uptrend.

It shows that the market opens higher & closes below the midpoint of the white body.

This highlights that the momentum of the uptrend is reducing and the market trend is likely to reverse & move in a downwards direction.

This pattern is shown known as a cloud cover signifying the cloud as a ceiling for the currency price upward trend.

Dark Cloud Cover Candle

Technical Analysis Dark Cloud Candle Pattern

A sell signal is confirmed once price closes below the neck-line which is the opening of the candle on the left of this candle.

This is a bearish setup and price should continue moving downward and for one who puts a sell trade should also put a stoploss order just above the highest price level.